And just like that rates start rising; Westpac hikes interest rates

TMM reported recently that home loans could start rising and that is exactly what has happened. Westpac has hiked all fixed rates from two years to five years by 30 basis points each.

Meanwhile it lowered its six month rate 20 basis points.

The bank blames significant increases in wholesale rates for the hikes.

Westpac managing director of Product, Sustainability and Marketing, Sarah Hearn, says while it is raising longer-term rates, the bank is holding back some of those cost increases for customers.

“With today’s changes, we’re holding back some of the increase in wholesale borrowing costs to customers, while also offering great value for those looking for short-term flexibility with our new 6-month advertised special rate.